VERIS LIMITED — Interim / Quarterly Report 2018

Feb 27, 2018

VERIS LIMITED FOR THE HALF YEAR ENDED 31 DECEMBER 2017

==> picture [158 x 167] intentionally omitted <==

APPENDIX 4D

The current reporting period is the half-year ended 31 December 2017. The prior reporting period is for the halfyear ended 31 December 2016.

RESULTS ANNOUCEMENT TO THE MARKET 31 DECEMBER 2017
Change from prior period Revenue 47% Expenses 41% Underlying Profit from operating activities EBITDA1 Depreciation and Amortisation 1% Restructuring Costs & Acquisition Costs 62% Share-based Payments 11% Net loss from operating activities 59% Net loss from continuing operations net of tax 38% Net loss from Discontinued Operations 102% Net loss after tax for the period attributable to members 1020%	$000’s 46,266 42,031
	4,235 3,481 1,669 354
	1,269 1,620 46 1,666

1 EBITDA is defined as earnings before depreciation, amortisation, interest, tax, impairment, restructuring, share-based payments, discontinued operations and acquisition costs and is an unaudited non-IFRS measure

Page 1 of 3

==> picture [158 x 167] intentionally omitted <==

EXPLANATION OF RESULTS

Veris’ revenue from continued operations during the period ended 31 December 2017 was $46,266,000; up from $31,560,000 in the prior corresponding period. The increase was primarily driven by the surveying segment revenue increasing from $29,451,000 to $41,298,000. This growth was the result of the Company’s strategy of developing a premier national surveying business with desirable exposure to property and civil infrastructure markets, particularly focused in New South Wales, Victoria and Queensland, which has offset declining revenues from Western Australia.

Veris surveying EBITDA (EBITDA is defined as earnings before depreciation, amortisation, interest, tax, impairment, restructuring, share-based payments and acquisition costs and is an unaudited non-IFRS measure) was $5,594,000 (1H FY17: $3,577,000) being a 56% increase on the prior corresponding half. Veris expects survey division EBITDA to be stronger in 2H FY2018 given an upward trend in month-on-month results in the first half, indications of continued growth in the East Coast infrastructure markets and full period earnings from the LANDdata acquisition. This expected progression validates the Company’s strategic commitment, to move away from its traditional construction focus in WA and deliver premium Professional Services across Australia.

The recently launched AQURA Technologies brand achieved revenue for the half of $4,968,000 with an EBITDA contribution of $120,000. AQURA is expected to contribute higher revenue and earnings in the second half as several projects are delivered.

The OTOC Australia construction business was discontinued at the commencement of the half year. As a result of the sale of redundant equipment, the discontinued operation contributed a $280,000 to the group EBITDA during 1H FY18 and a loss after tax of $46,000.

Restructuring Costs include one off costs incurred as part of the integration of 9 businesses into one entity Veris Australia PTY LTD. Integration is on schedule and is expected be completed by 30 June 2018.

The Company has a strong balance sheet to maintain organic growth and fund further acquisitions which includes Cash $8,108,000 and approximately $22,000,000 in undrawn acquisition lending facilities.

Veris is a national professional service business delivery planning, urban design, survey and geospatial solutions to the infrastructure, property and resource markets throughout Australia. Veris Limited is the Group’s holding company that is listed on the ASX under the code VRS.

NTA Backing	31 December 2017	31 December 2016
	cents per share	cents per share
Net tangible assets per ordinary share	6.12 cents	7.32 cents

Page 2 of 3

==> picture [158 x 167] intentionally omitted <==

Dividends declared

On 17 August 2017 the Company declared a fully franked dividend for 2017 of 0.5 cents per share, totalling $1,636,000; (2016: $1,368,000) with a record date of 1 September 2017. On 15 September 2017, the Dividend paid in cash to shareholders was $1,256,000 and 2,238,596 shares issued under the Dividend Reinvestment Plan (“DRP”).

Dividends or distribution reinvestment plan

Veris introduced a Dividend Reinvestment Plan during 2016. The last date for receipt of election notices under the DRP WAS 8 September 2017. The 2,238,596 Shares issued under the DRP were issued at a calculated reinvestment price of 16.9 cents per share which was based on a 5% discount to the volume weighted average price of Veris Shares 5 days following the record date.

Associates and joint venture entities

Not applicable.

Foreign entities GAAP applied

Not applicable.

Audit report

This report is based on the interim financial report which has been independently reviewed and is not subject to qualifications.

Page 3 of 3